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Maharashtra CM hopeful of renegotiation with Enron

Maharashtra Chief Minister Vilasrao Deshmukh said on Friday that he was hopeful of renegotiating the power purchase agreement with Enron-promoted Dabhol Power Company even though the US energy giant was contemplating serving of notice terminating power supply to the state.

Deshmukh told reporters in Bombay that the central government too had favoured renegotiation in light of the report submitted by the Godbole panel.

Asked what would be the stand of the Maharashtra government if the DPC management, empowered to terminate PPA with MSEB by Enron's board, went ahead and served the notice, the chief minister said, "Just as they have their rights, we too have our own."

Deshmukh on Thursday had said that the termination of the PPA between DPC and MSEB would be harmful to both the parties and requested Enron not to take any 'harsh decision' in the matter, precipitated by piling up of payment arrears due to DPC.

He rejected a suggestion that termination of the controversial project would affect the flow of foreign investment into the state and the country.

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